When it comes to outsourcing, organisations face the decision of which of their operations to keep in-house and which will be provided by an external service provider.This is no different when it comes to outsourcing key IT functions, including everything from cloud services, software development, data management, and website maintenance. But as is often the case, organisations are facing the delicate balancing act between the war for talent and keeping a tight lid on rising costs.
Outsourcing can be a lifeline to many small and large businesses. In an article recently published by Computer Weekly, it was noted that 63% of UK organisations are looking to either continue outsourcing at the current level or increase outsourcing over the next year, with almost a third of these organisations planning to increase spend, mainly due to the need to access talent. Equally, when it comes to investment in IT, a large majority of organisations are focusing on automation services contracts as a means of lowering costs and lower the need to recruit more staff. Therefore showing that many are turning to outsourcing to fill gaps, whether that is in skilled labour or key systems. But it doesn’t seem that all organisations are following the same trend.
Faced with rising cost pressures, is the investment in outsourcing too high a risk to bear? In another article published by Computer Weekly , it was stated that spending in cloud services and managed services contracts had decreased in the first quarter of 2023. In the UK alone, spending in IT and BPO services had also decreased by 2% for the same quarter in 2022 and by 36% for the final quarter of 2022. With that being said, it was stated many organisations are in fact content with their IT service providers.
Therefore, could the decrease in spending simply just be a sign of more people returning back to the office after the pandemic, with less reliance on remote working solutions?
While some organisations may be nervous to commit budgetary spend to IT outsourcing and cloud systems, we recognise that they can be an excellent way to manage costs more effectively. In particular, when faced with trying to attract and retain a talented workforce, outsourcing might just provide the answer.
To find out how we can help you with all of your outsourcing decisions and enable you to source and contract with the provider that is right for you, get in touch for 30 minute call today